Star (Industrial) War : Toward a risk of Creeping Take Over in the Global Space Industry

Rapp, Lucien
(2016)
Star (Industrial) War : Toward a risk of Creeping Take Over in the Global Space Industry.
In: Fourth Manfred Lachs International Conference on Conflicts in Space and the Rule of Law, 27 et 28 Mai 2016, Montréal.

Abstract

This paper analyzes the development of industrial cooperation in spaceactivities since the end of World War II. It highlights a gradual emancipation ofspace companies’ industrial cooperation and strategies from governmentalprograms (II). In the recent years, this emancipation results in the proliferation ofnumerous Joint Venture agreements (III) and in a significant number of mergersand/or acquisitions exceeding $ 500 million (IV). These transactions or JVs havecaused a consolidation trend in the space industry, now structured differentlyaround subcontractors of first, second and sometimes, third tiers ; spacesubcontractors whose business generates financing needs that exceed their cashresources and of which the increasing number calls for industry consolidation (V).These financing requirements and the need for consolidation could be a factor ofvulnerability of space industry in a speculative context where the space industrycombines numerous factors of attractiveness for investors (companies, funds) (VI),raising the crucial question of the effectiveness of the control systems implementedby states in the field of concentrations, foreign investment or exports of dual-usetechnologies (VII). A conclusion brings some recommendations that can be made insuch a context (VIII).